Overview: Are Short-Term Rentals Allowed in Irvine, KY?

Short-term rentals (STRs)—defined by local guidance as rentals of 29 days or less—are explicitly allowed and taxed in Irvine and Estill County. Operators must obtain the appropriate local business authorizations (city license/inspection for properties within the City of Irvine, or a one‑time business registration for properties outside the city limits), and they must collect and remit transient room taxes (TRT) and sales tax.

How to Start an STR Business in This Market

• Decide on property location:
  • Inside the City of Irvine: Follow city business licensing and building inspection requirements.
  • Outside the City of Irvine (including unincorporated Estill County and the City of Ravenna): Complete county-level business registration.
• Budget for taxes and fees:
  • Taxes to collect from guests: 6% Kentucky sales tax + 1% Kentucky state TRT + 3% Estill County local TRT on stays ≤ 29 nights.
  • City (Irvine): Annual Business Privilege License; building inspection fees vary.
  • County (outside Irvine): One‑time $25 business registration fee; 2% net profit tax and 2% occupational tax may apply to the business entity (confirm with Estill County Treasurer).
• Set up tax remittance:
  • Register to collect and remit Kentucky sales tax and the Kentucky state TRT (via the Kentucky Department of Revenue).
  • Set up monthly remittance of the 3% local option TRT to Estill County using the county’s Transient Room Tax form.
  • If no lodgers in a given month, still submit the county form with zeros.
• Confirm listing and operational compliance:
  • Airbnb and VRBO support have not automatically remitted the 3% local TRT to Estill County; hosts must ensure proper tax setup and manual remittance as needed.
  • Add the property to tourism promotion via Explore Estill (optional but helpful for visibility).
• Operate and renew:
  • Renew city business license annually (if within Irvine).
  • Maintain monthly local TRT filings; monitor county guidance for any changes.
  • Keep records of guest nights, rates, and tax collections for audits.

Required Documents, Permits, Licenses, and Guidelines

• Within the City of Irvine:
  • City of Irvine Business Privilege License (annual).
  • City of Irvine Building Inspection (and any necessary safety/compliance steps) prior to operation.
  • Authority: Irvine City Clerk; city forms and permits via Forms & Permits page.
• Outside the City of Irvine (including unincorporated Estill County and the City of Ravenna):
  • Estill County Business Registration (one‑time $25 fee).
  • Net Profit Tax and Occupational Tax at 2% (applies to the business; confirm applicability and filing cadence with the Estill County Treasurer).
• State-level tax registrations:
  • Kentucky Department of Revenue registration for:
    • 6% sales tax on the accommodation charge.
    • 1% Kentucky state TRT on stays ≤ 29 nights.
• Local tax compliance:
  • 3% Estill County Local Transient Room Tax on stays ≤ 29 nights, remitted monthly to Estill County Treasurer via the county’s Transient Room Tax form.

Specific Regulations (City, County, and State)

• City of Irvine:
  • STRs are allowed subject to city business licensing and building inspection requirements.
  • Annual Business Privilege License required to operate within city limits.
• Estill County (outside Irvine, including Ravenna):
  • Allowed; one-time $25 business registration fee.
  • Additional net profit and occupational taxes at 2% apply to the business entity (confirm filings and payment schedules with the Treasurer).
• State of Kentucky:
  • 6% sales tax applies to STR transactions.
  • 1% state TRT applies to stays of 29 nights or less.
  • Local governments have broad authority to regulate STRs; hosts must follow both state tax rules and local licensing/tax rules.

Contact Information (Local Authority in Charge of STRs)

• Estill County Treasurer (local TRT collection and county business registration)
  • Website: estillky.com/estill-treasurer
• City of Irvine Clerk (city business licensing and building inspection)
  • Address: 101 Chestnut Street, Irvine, KY
  • Website: irvinekentucky.gov/formsandpermits
• Irvine‑Estill County Tourism Commission (promotion, local TRT guidance)
  • Address: PO Box 421, Irvine, KY 40336
  • Phone: (606) 723‑2450
  • Website: exploreestill.com
  • Local lodging listing submission: Explore Estill Lodging Form

Source Links

• Kentucky STR overview and local regulatory context: www.igms.com/airbnb-regulations-by-state/
• Estill County STR guidance, taxes, and contacts: www.exploreestill.com/strowners.html
• Kentucky ADU and zoning framework (county/municipal context for housing/secondary units): www.zookcabins.com/regulations/adu-regulations-in-kentucky

Notes for investors:

• Clarity and cadence matter. Confirm any local inspection and safety requirements with the City of Irvine and ensure monthly local TRT filings even if there are zero lodgers.
• Verify county business tax applicability with the Treasurer, especially for non‑owner‑operators or entities that may owe net profit/occupational taxes.
• Keep your sales tax and state TRT registrations current with the Kentucky Department of Revenue to avoid penalties and interest.